Nearly 3 Billion BUSD Stablecoins Have Been Removed From the Market in 6 Days
Six days ago, a few hours before the blockchain infrastructure platform Paxos announced it would no longer mint BUSD stablecoins, $2.86 billion worth of BUSD were redeemed. Currently, Binance is the most active exchange trading BUSD tokens, and the stablecoin still commands roughly 10.7% of the crypto economy’s $67.71 billion in global trade volume over the past 24 hours. BUSD Supply Shrinks by 17.77% in 6 Days
Statistics show that a significant amount of BUSD has been redeemed over the past six days, with the supply dropping by 17.77% during that time frame. Over the past 30 days, the supply of BUSD has shrunk by 19.2%. On Feb. 13, 2023, Paxos, the company that issues, manages, and redeems BUSD, announced that it would no longer mint new BUSD going forward.
Redemptions kicked into high gear after Paxos made the announcement, with $290 million being redeemed within eight hours. At the time of the announcement, there was $16.1 billion BUSD in circulation. As of Feb. 19, 2023, there are approximately 13,238,824,118 BUSD in circulation, meaning that the 17.77% of BUSD redeemed accounted for 2.861 billion tokens being removed from the market. Statistics from Glassnode show the supply at 13.43 billion while coingecko.com statistics show the supply at 13.23 billion.
The blockchain intelligence firm Nansen has been monitoring the Paxos Treasury wallet, which sends millions of BUSD to the burn address, effectively removing the stablecoins from circulation. According to Nansen’s exchange portfolio tool, Binance currently holds 10.9 billion BUSD as of Feb. 19, 2023. Metrics show that BUSD still accounts for $7.24 billion of the day’s $67.71 billion in global trade volume, which represents 10.7% of the total.
Binance dominates most of BUSD’s trading volume, with the stablecoin’s most popular trading pair today being tether (USDT). According to statistics from cryptocompare.com, 5.52% of BUSD volume on Sunday was also paired with the Turkish lira. Although BUSD had the most redemptions in the past 30 days, USDC saw 2.9% of its supply removed during that period.
Notably, Paxos’ other stablecoin, pax dollar (USDP), has seen its supply decrease by 19.3%. A significant amount of pax gold (PAXG) has also been removed, as 11.3% of the circulating supply has been erased in 30 days. In contrast, tether (USDT) has seen its supply increase by 5.8%, resulting in a market capitalization of more than $70 billion. Tags in this story 8 hours, Altcoins, Binance, Binance Paxos, Blockchain, blockchain intelligence, Burn Address, BUSD, BUSD redemptions, BUSD stablecoins, Charges, circulating supply, Circulation, crypto economy, Cryptocompare, cryptocompare.com, Cryptocurrency, Exchange, fully-backed, Global Trade Volume, halting, Market Capitalization, Market Trends, minting, Nansen, NYDFS, Pax dollar, PAXG, Paxos, Paxos Trust Company, Portfolio Tool, press release, Redeemable, redemptions, Stablecoin, stablecoin news, Stablecoins, Statistics, Supply Shrinkage, Tether, trade volume, trading, Turkish Lira, USDC, USDP, USDT
What do you think the future holds for BUSD in light of these recent developments and redemptions? Share your thoughts in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Stablecoin Market Sees Supply Increase for Tether as Competitors Decline in Light of Recent Regulatory Developments ALTCOINS | 5 days ago BUSD Redemptions Soar Near $290 Million in 8 Hours After NYDFS Consumer Alert ALTCOINS | 6 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleDemocrats to Return 2.2% of $45.2 Million Donation Made by FTX’s Co-Founder Sam Bankman-Fried Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method